Looks like sellers are doing it again - expecting massive short-term returns on real estate, this time in a so-so building in Chelsea, across the street from 21 Chelsea where you can rent something virtually identical for 1/3 the cost:

125 WEST 21 STREET, 12B Manhattan 4/25/2008 $1,848,123

125 West 21st Street #12B in Chelsea $2,425,000

Total Monthly Payment: $14,932

Neat. A 31% profit since April. And a virtual steal at $15k a month!

Jeez. The building isn't even that nice to begin with.

StreetEasy History

02/21/2008 Listed in StreetEasy by The Malley Group at $2,396,860
05/05/2008 Price increased to $2,525,000
07/15/2008 Price decreased to $2,425,000

The best is they tried to flip it a mere 2 weeks after buying it, the original price being $2,525,000, which would have been a 37% profit. Seems they even listed it before they closed on it.

The location is fine. The price is outrageous.

Can't sellers price their property wherever they want? Who cares if it sells or if they make/lose money?

"Can't sellers price their property wherever they want?"

Yup.

"Who cares if it sells or if they make/lose money?"

They do.

I think you're deliberately missing the point.

"full time live in supper" sounds a little gross but I guess it would keep some of your costs down.

"I think you're deliberately missing the point."

Maybe. But, I find it comical how people on SE almost get pissed-off regarding the prices of apts. If a seller really wants to unload his goods, he will lower the price accordingly. Until then, that's what you get. (Disclaimer: I didn't even read the link at the top, because properties like that are way out of my range.) People are always talking about how much a place is "worth"... it's worth what someone will pay. If someone pays the ask, then it was priced correctly. If it sits on the market for a year, then the seller must really not care about selling.
Maybe people intentionally overprice their apts just to screw with people on SE... like, they really aren't even trying to sell.

I agree.

People put their homes "on the market" just in case someone does bite at their asking, even if it is way high.
A lot of brokers list their own homes for sale at artifical prices to generate leads. They say ...oh, that one just went into contract, but I have something else for you.
A lot of people aren't real sellers, so analyzing SE data is pointless. Until you even have a price of what it transacted at, meaning closed, the numbers aren't even relevant.

you forget, broadwayron, a lot of people on this blog devote their lives to SE and arguing with each other about the data here. This, for them, is all they have going for them in life.

"oh, that one just went into contract, but I have something else for you."

That sounds ethical.

But if that's the argument, why would a broker list an apartment for far more than it's worth - that won't "generate interest," will it?

"A lot of people aren't real sellers, so analyzing SE data is pointless."

I see. Now here comes the argument that inventory is really down....

Really exit 2? You've been on here quite a bit lately. So you just know.

31% profit, really? zero transaction costs on both ends? Isn't it probably more like 15% profit. Why do you do that? You would be the first one to mention leaving out transaction costs if someone was doing buy rent math wrong. We get your point, why fudge it?

Beyond that don't you think they might be overpricing because they know in this market they'll have to negotiate down significantly? My guess is they don't expect any profit and would be thrilled to get out even.

Beyond that, I agree with everything broadwayron said. Why should we care if some seller wants to let his place sit on the market indefinitely at a price that is outside the bounds of reality?

It will probably make them break even since with new development the buyer typically pays the developer's costs.

But that's not what the potential buyer sees. He sees 37%.

Any of these sellers might just be a SE regular who's doing this on purpose, just to observe the massive heartburn this apparently brings to some of the folks here.

Does anyone know if the E units face the back of the building?

yeah the e units face the back and the view is a drag

Units 7E and 9E with huge price drops! 1.4M - > 980k... 30% drop from peak for new construction...

Still outrageously priced. You can rent a virtually identical apartment across the street, albeit one with a view, for $3,800.

ouch! I didn't realize there were units across the street.